Think Financial Markets - Excellence In Trading Financial Markets

Think Financial Markets - Excellence In Trading Financial Markets

Market Sentiment

It is essential that we have a general feeling of which direction our market may trade on any given day.

To achieve this it is necessary to be aware of how global markets have performed on the previous day as well as during the night.

We measure this sentiment by allocating points to certain global indicies to measure their strength or weakness.

We look firstly to The Dow Jones Index. This index is one of the world’s most influential and as such rates very highly in determining the daily sentiment.

We allocate between 2 pts plus or minus if the overnight movement is less than 50pts or 4pts if over 50pts

The next most important indicator is the SPI200 which is the futures contract covering the Australian markets top 200 stocks and trades almost 24hours per day.

We also allocate between 2 and 4 pts as per the Dow.

Then we add both the Nasdaq and the S&P 500 indicies from the U.S they are allocated points as follows

Nasdaq above /below 30 ,plus or minus 2pts or less than 30, 1pt

S&P 500 above /below 15, plus or minus 2pts or less than 15, 1pt

Next we add the FTSE 100 results from England and the NIKKEI 250 from Japan which are allocated 1pt for a plus or minus result.

The maximum points on our table are 14 and variations of this will gauge bullish or bearish sentiment.

Other very important overnight markets to be taken into consideration when trading the Australian market are firstly the strength or weakness in the Aussie dollar versus the US dollar and we rarely have a good day if the commodity markets have been sold down during the night.


Thursday, April 30, 2009

Market Sentiment

Dow 169 =4
Nasdaq 38=2
S&P 500 18=2
Ftse 93=1
Nikkei n/a
Futures 35 =2
Market Sentiment 11
The Australian share market should open higher after strong gains on Wall Street.

Wednesday, April 29, 2009

Market Sentiment

Dow -8 =-2
Nasdaq -6=-1
S&P 500 -2=-1
Ftse -71=-1
Nikkei -233 =-1
Futures 29 =2
Market Sentiment -4

Australian shares are expected to fall on Wednesday, with banking stocks likely to take a hit after Australia and New Zealand Banking Group Ltd reported worse-than-expected profit.

ANZ reported a 43 per cent drop in its first-half cash profit, hurt by a more than doubling of bad debt charges, and flagged a further rise in provisions in the second half.

A spread of deadly swine flu outbreak to more countries would keep investors on the edge.

The mood will also be cautious after US stocks fell on fresh worries that major Wall Street banks may need to raise more money, offsetting more reassuring economic data that suggested worst may be over.

Tuesday, April 28, 2009

Market Sentiment

Dow -51 =-4
Nasdaq -15=-1
S&P 500 -9=-1
Ftse -11=-1
Nikkei 18 =1
Futures 2 =2
Market Sentiment -4

The Australian share market is expected to open flat after investors in the US and Europe turned cautious on the impact of swine flu.

US stocks fell slightly while European and Asian markets recorded modest gains.

Monday, April 27, 2009

Market Sentiment

Dow 119 =4
Nasdaq 42=2
S&P 500 14=1
Ftse 138=1
Nikkei -139 =-1
Futures 43 =2
Market Sentiment 9
The Australian sharemarket is expected to open higher on Monday after United States markets lifted on Friday.

On Wall Street, investors were encouraged by car-maker Ford's narrower-than-expected loss and economic reports suggesting that the troubled US economy may have found a bottom and was improving.

Friday, April 24, 2009

Market Sentiment

Dow 70 =4
Nasdaq 6=1
S&P 500 8=1
Ftse -12=-1
Nikkei 119 =1
Futures 19 =2
Market Sentiment 8
The Australian share market is expected to open higher after US stocks gained overnight as financials gained on a strong profit result from PNC Financial Services.

Gold miners are likely to gain after the price of the precious metal increased.

Thursday, April 23, 2009

Market Sentiment

Dow -83 =-4
Nasdaq 2=1
S&P 500 -7=-1
Ftse -43=-1
Nikkei 16 =1
Futures -12 =-2
Market Sentiment -6

The Australian share market is expected to open little changed following a mixed lead from US stocks.

Gold miners are likely to gain after the price of the precious metal increased.

Wednesday, April 22, 2009

Market Sentiment

Dow 127 =4
Nasdaq 36=3
S&P 500 18=2
Ftse -3=-1
Nikkei -213 =-1
Futures 35 =2
Market Sentiment 9
The Australian share market is expected to open higher after US stocks gained as Treasury Secretary Timothy Geithner reassured investors about bank balance sheets.

Tuesday, April 21, 2009

Market Sentiment

Dow -289 =-4
Nasdaq -95=-2
S&P 500 -37=-2
Ftse -102=-1
Nikkei 17 =1
Futures -71 =-4
Market Sentiment -12
The Australian share market is expected to open lower after US stocks slumped on concerns about the level of bad loans held by banks following Bank of America's earnings report.

Gold miners may gain after the precious metal advanced on Monday while energy stocks are likely to decline on the drop in the oil price.

Monday, April 20, 2009

Market Sentiment

Dow 6 =2
Nasdaq 3=1
S&P 500 4=1
Ftse 40=1
Nikkei 152 =1
Futures 33 = 2
Market Sentiment 8
A torrent of earnings threatens to swamp Wall Street's impressive rally next week, as results so far have shown the corporate outlook remains murky and investors worry that better-than-expected results from banks still don't prove the sector is stable.

Friday, April 17, 2009

Market Sentiment

Dow 96 =4
Nasdaq 44=2
S&P 500 13=1
Ftse 85=-1
Nikkei 12 =1
Futures 40 = 2
Market Sentiment 9
The Australian share market is expected to open higher after US stocks soared as investors grew more confident that the bruised economy is starting to heal.

Gold, silver and copper prices eased, while oil prices swung higher overnight.

Thursday, April 16, 2009

Market Sentiment

Dow 109 =4
Nasdaq 1=1
S&P 500 11=1
Ftse -21= -1
Nikkei -100 =-1
Futures 38 = 2
Market Sentiment -6
The Australian share market is expected to open higher after Wall Street rose on hints of the recession easing.

Wednesday, April 15, 2009

Market Sentiment

Dow -138 =-4
Nasdaq -26=-2
S&P 500 -17=-2
Ftse 5= 1
Nikkei -82 =-1
Futures -41 =-4
Market Sentiment -12
The Australian share market is expected to open lower following falls on Wall Street after a weak retail sales report punctured the market's optimism about the economy.

Tuesday, April 14, 2009

MarketSentiment

Dow -25 =-2
Nasdaq 1=1
S&P 500 2=1
Ftse 58= 1
Nikkei -40 =-1
Futures 63 =4
Market Sentiment 4
The Australian share market has received mixed leads from overseas after crude oil prices slid overnight and US stocks ended mostly higher.

Thursday, April 9, 2009

Market Sentiment

Dow 48 =2
Nasdaq 29=1
S&P 500 10=1
Ftse -5=- 1
Nikkei -238 =-1
Futures 45 =2
Market Sentiment 4
The Australian share market is expected to open in positive territory after Wall Street rose overnight and commodity prices were stronger.

Wednesday, April 8, 2009

Market Sentiment

Dow -186 =- 4
Nasdaq -45=-2
S&P 500 -20=-2
Ftse -63=- 1
Nikkei -25 =-1
Futures -50 =-4
Market Sentiment -14
The Australian share market is expected to open in negative territory as Wall Street plunged over two per cent overnight.

Tuesday, April 7, 2009

Market Sentiment

Dow -41 =- 2
Nasdaq -15=-1
S&P 500 -7=-1
Ftse -36=- 1
Nikkei 108 =1
Futures -21 =-2
Market Sentiment -6
The Australian share market is expected to open lower following a profit-taking day on Wall Street and weaker commodity prices.

Monday, April 6, 2009

Market Sentiment

Dow 40 = 2
Nasdaq 19=1
S&P 500 8=1
Ftse -65=- 1
Nikkei 30 =1
Futures 33 =2
Market Sentiment 6
The Australian share market is likely to open higher after gains in US equities, before attention turns to the Reserve Bank of Australia's interest rate decision.

Economists are at odds over whether the RBA will cut rates at its meeting on Tuesday.

"There are good reasons for them to hold back and good reasons for them to cut," Commonwealth Securities senior analyst Craig James said.

Friday, April 3, 2009

Market Sentiment

Dow 216 = 4
Nasdaq 51=2
S&P 500 23=2
Ftse 169.36= 1
Nikkei 368 =1
Futures 56 =4
Market Sentiment 14
The Australian share market is expected to open higher following big gains on all world markets as world leaders announced new plans to mend leading economies.

Thursday, April 2, 2009

Market Sentiment

Dow 153 = 4
Nasdaq 23=1
S&P 500 13=1
Ftse 29=1
Nikkei 242 =1
Futures 58 =4
Market Sentiment 12
The Australian share market is expected to open higher following a positive lead from US and European stock markets.

Wednesday, April 1, 2009

Market Sentiment

Dow 87 = 4
Nasdaq 27=1
S&P 500 10=1
Ftse 163=1
Nikkei -126 =-1
Futures 26 =2
Market Sentiment 8
The Australian share market is expected to open higher with US and European stock markets ending the first quarter of the year with rallies overnight.